Fortum Business Model Canvas

Fortum's strategic alliances with energy firms, like the 60:40 partnership with Helen Limited in the Pjelax wind project, highlight its collaborative approach. These partnerships facilitate the sharing of resources and risks, which is crucial in the volatile energy sector. This collaboration model improves the efficiency of renewable energy projects, such as the Pjelax wind farm with a capacity of 380 MW.

• Pjelax wind project capacity: 380 MW.
• Partnership with Helen Limited: 60:40.
• Focus: Renewable energy projects.
• Objective: Share resources and risks.

Fortum's collaborations with research institutions, such as MIT, are crucial for innovation. These partnerships drive technological advancements in areas like Small Modular Reactor (SMR) modelling. A notable project between Fortum and MIT focuses on SMR modelling, enhancing Fortum’s future nuclear capabilities. Such collaborations are vital for staying at the forefront of energy solutions.

• In 2024, the global SMR market was valued at $7.3 billion.
• Fortum's R&D spending in 2023 was approximately €50 million.
• MIT's nuclear research budget for 2024 is estimated at $40 million.
• The SMR market is projected to reach $18.5 billion by 2030.

A skilled workforce is a cornerstone for Fortum's operations, ensuring the smooth running of power plants, driving new projects, and delivering top-notch customer service. With a team of around 5,000 employees, Fortum prioritizes a safe and motivating work environment. They invest in their employees' development to maintain high operational standards and foster innovation. This focus is essential for their long-term success in the energy sector.

• Fortum employed roughly 5,000 people.
• The company aims for a safe and inspiring workplace.
• Skilled workforce is vital for power plant operations.
• Employee development supports operational excellence.

Financial resources are vital for Fortum to invest in new ventures, upkeep assets, and handle risks effectively. Solid financial strategies and a robust balance sheet are critical for long-term sustainability. In 2024, Fortum's credit rating, at least BBB, supports its financial strength. This rating allows Fortum to secure funding at favorable rates.

• Credit rating supports financial flexibility.
• Prudent policies are key for stability.
• Strong balance sheet enables investment.
• Financial resources manage potential risks.

Fortum prioritizes customer relationships by offering various customer service channels. This approach ensures accessibility and responsiveness, critical for maintaining customer satisfaction and loyalty. Fortum's commitment to customer service is evident in its operations. Fortum has around 2.1 million customers in the Nordics, underlining the importance of effective service channels.

• Online support provides instant access to information and assistance.
• Phone support offers direct communication for complex issues.
• In-person support provides personalized assistance where available.
• These channels collectively enhance customer experience and trust.

Fortum's community engagement focuses on building strong relationships with local communities and stakeholders, fostering trust for project success. This involves proactive communication, addressing concerns, and supporting local initiatives. For example, Fortum invested approximately €2 million in local community projects in 2023. Fortum's societal engagement is crucial for its new nuclear projects.

• Local Community Support: Fortum invests in local projects.
• Stakeholder Communication: Proactive dialogue to address concerns.
• Trust Building: Essential for project acceptance and success.
• Financial Commitment: Significant investments in community initiatives.

Municipalities represent a key customer segment for Fortum, demanding energy for essential services like street lighting, public transit, and heating. This segment prioritizes sustainability and seeks cost-effective energy solutions to manage public budgets. Fortum collaborates with municipalities, offering clean energy options and tailored services to meet their specific needs. For example, in 2024, Fortum signed several agreements with cities across the Nordics to supply renewable energy.

• Focus on sustainable energy solutions.
• Aim for cost-effective energy supply.
• Provide tailored services.
• Collaborate with cities.

Energy-intensive industries are key customers for Fortum, especially those needing reliable, clean energy. These industries, including aluminum manufacturing, have substantial energy demands. Fortum actively investigates low-carbon aluminum manufacturing opportunities in Finland, supporting feasibility studies. In 2024, the aluminum sector's energy consumption was approximately 1.5% of global energy use.

• Feasibility studies focus on reducing the carbon footprint of aluminum production.
• This supports Fortum's strategy to provide sustainable energy solutions.
• The goal is to help these industries lower their emissions.
• It aligns with the growing demand for green industrial processes.

Fortum's capacity payments stem from grid operators, ensuring dependable power generation. These payments are crucial, supporting investments in new power plants, particularly essential for long-term energy security. New nuclear projects, if conditions align, could start contributing to the Nordics' power supply in the late 2030s. This strategic approach helps stabilize revenue, supporting infrastructure development.

• Capacity payments guarantee revenue, offering financial stability for power generation projects.
• Investments in new power plants are supported, vital for meeting future energy demands.
• New nuclear projects could start contributing to the Nordics' power supply in the late 2030s.
• This strategy enhances Fortum's financial resilience and operational planning.

Fortum's Environmental Value Products revenue stream focuses on selling environmental attributes tied to renewable energy production. This primarily includes Guarantees of Origin (GOs) and Elcertificates. Fortum's sales of GOs in Europe allow customers to demonstrate their commitment to renewable energy. This revenue stream supports Fortum's sustainability goals and provides a market-based mechanism for promoting green energy.

• GOs are crucial for tracking and validating renewable energy consumption.
• Fortum sells GOs as part of its power sales.
• This stream aligns with increasing corporate sustainability demands.
• Revenue helps fund further renewable energy projects.